Ashley pulls back from two projects

Moves to sell condo site in West Easton

puts Majestic plan on hold.

September 29, 2007|By Angel R. Ackerman Special to The Morning Call -- Freelance

Ashley Development Corp. has told West Easton officials that it may sell the Chipman Mills property, planned for condominiums, to a company that would convert the former warehouse into assisted-living units.

Mayor Gerald Gross, who received a letter from Ashley on Thursday announcing the change in plans, was not happy. He said the Chipman Mills project, initially projected to cost $20 million, would have increased tax revenue for the small borough by a third.

"The Chipman Mills project was the perfect opportunity for the borough of West Easton to gain financial stability," he said. Meanwhile, Ashley President Lou Pektor said Friday that the $40 million Majestic high-rise on S. Third Street in Easton is "on hold until market conditions are better for condominium financing."

Barbara Kowitz, director of planning and development for Easton, isn't worried about the Majestic project being delayed.

"Any change in time frame that slows down the process does make us impatient, but positive change doesn't happen quickly," she said Friday.

Pektor did say that the $12 million Pomeroy's Lofts project, also in downtown Easton, and the $110 million condominium redevelopment of the former Dixie Cup warehouse in Wilson will proceed.

The change to West Easton's project follows overtures to Ashley by a private group. The site has the infrastructure necessary for an assisted-living facility, and the group, which Pektor declined to name, is investigating other communities in the Lehigh Valley.

Pektor said Ashley won't desert West Easton. His company owns the land, he said, so this is just an "alternative."

The letter to Gross and to Council President William Concolino from Ashley Vice President Richard Brooks states that the company has been negotiating with the other local developer.

"Although the sale has not been finalized, I felt it was important to let you know what we are doing," Brooks wrote. "Ashley Development believes that the sale of the Chipman Mills property will continue to be a positive for the borough."

Gross disagreed.

If the assisted living developer turns out to be a nonprofit group, that could mean a loss of tax revenue. In that case, West Easton would not even collect the current taxes on the property.

"I fought like hell for this project," said Gross, who helped convince some on council that the project was worth supporting. "I thought we had it nailed. It's so discouraging."

He believes financing played into the demise of the project.

"Since the start of this planned development three years ago, there has been a shift in the financial climate for builders and real estate," he said. "There had to be some adjustments made; I believe Chipman Mills was an adjustment."